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Most Bangkok-based
economists see economy
growing 1.45% in Q4
Most Bangkok-based economists believe that the Thai economy will grow only
1.45 percent in the fourth quarter of this year, according to the Krungthep
Poll conducted by Bangkok University’s Research Center.
The results of the survey, which sought the opinions of economists from 14
leading organizations in Thailand on the “Projection of Thai Economy in 4th
Quarter of 2009,” stated that the economists comments lived up to the
expectation of the government that the economy would turn positive in the
fourth quarter, boosted by the state-initiated economic stimulus package.
However, the economists also see the inflation rate continuing in negative
territory at 0.7 percent and, consequently, the Bank of Thailand (BoT) will
maintain its policy interest rate at 1.25 percent until the year end to
stimulate the economy.
They also predict that the baht will appreciate to remain in the range of
31.1-33.6 to the US dollar, which could deter Thailand’s exports and
economic expansion in the future.
The economic gurus proposed that the state sector stimulate the economy
through investment and employment rather than consumption because it would
contribute to strong economic growth in the long term and boost the
country’s competitiveness.
Still, the stimulus measures must be taken openly and transparently.
The economists expressed concern that Thailand’s political woes could
continue to be a key deterrent to economic growth. (TNA)
Commuters satisfied with
test run of airport link
The State Railway of Thailand (SRT) began its trial run of
the airport link railway Wednesday, connecting Makkasan railway station in
Bangkok and Suvarnabhumi International Airport in Samut Prakan province.
A large number of the prospective passengers showed interest in traveling on the
test run of the 28.6 kilometer route, according to the authorities, but
full-scale commercial operation is not expected until April next year.
SRT governor Yuthana Thapcharoen said that the test run on Wednesday went
smoothly. He expressed confidence that it would be well used by commuters when
it starts full operation.
Most passengers said the airport link railway was convenient, similar to the BTS
Sky Train, but the airport link (Express Line) is faster taking only 15 minutes
from Makkasan to Suvarnabhumi Airport. They said they will definitely use the
airport link service when they travel to the airport. (TNA)
Japanese investors urge
government to help resolve
industrial project suspensions
Key Japanese investors in Thailand have been affected by the
recent Central Administrative Court injunction putting 76
industrial projects in the country’s largest industrial estate
on temporary hold, according to the Japanese Chamber of Commerce
(JCC) in Bangkok.
JCC president Yo Jitsukata said some of the chamber’s members
have been negatively affected by the order against their new
investment projects and are concerned that the order will impact
other firms intending to invest in the Maptaput industrial
estate on the Eastern Seaboard.
Some of the firms eventually may be forced to close parts of
their business ventures due to the shortage of components and
processed raw materials they would otherwise receive from
opening the new plants, Jitsukata said.
On September 29 the court ordered all 76 industrial ventures in
the Maptaput industrial estate to temporarily halt operations
amid local residents and NGO’s continuing concern about critical
environmental and health impacts.
Prime Minister Abhisit Vejjajiva earlier this week said the case
is not over because the government has appealed the court’s
order. He said the government wants development to proceed, to
boost investor confidence, but the quality of life hardship and
health concerns the people face from implementation of the
projects with inadequate environmental protection must also be
recognized.
Jitsukata said the JCC hoped that the problem could be resolved
as soon as possible so that the halted projects could proceed.
Japanese investors, said Jitsukata, give importance to
environmental protection concerns and have cooperated with the
government in developing the Thai economy along with controlling
environmental pollution by using their expertise and the same
technologies used in Japan in this country. (TNA)
Thai consumer confidence rises for 4th consecutive month
Thailand’s Consumer Confidence Index (CCI) in September
increased slightly for the fourth consecutive month, from 74.5 to 75.6,
according to a survey released on Thursday.
Thanawat Polwichai, the director of the University of Thai Chamber of Commerce
(UTCC)’s Economic and Business Forecasting Center, said the increase in consumer
confidence was mainly due to consumers’ anticipation that the economy will
improve as a result of the government’s second round economic stimulus package
worth 1.43 trillion baht and dropping oil prices.
It showed people regained confidence but were still worried about global
economic slowdown and political uncertainty.
The CCI on the overall economy rose from 67.4 to 68.4, while the CCI in the next
six months was up from 76.8 to 78.
However, the survey excluded the Maptaput case regarding the Administrative
Court ordering suspension of 76 industrial projects in the Maptaput Industrial
Estate in Rayong. The resignation of the prime minister’s Secretary-General
Niphon Promphan and the Puea Thai party’s opposition to amending the
Constitution are also not included in the survey.
Thanawat said these factors are likely to shake consumer confidence and it
remains to be seen how this will affect the results of the CCI survey in
October. The Maptaput case, if prolonged for six months to one year, may slash
economic expansion by 0.5-1 percent and may cause the GDP in 2010 to expand less
than three percent, lower than forecasted earlier. (TNA)
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